In the News:

Childcare cost hike eats into subsidy

Jackson Lavell-LeeBusselton Dunsborough Times

Friday, 23 August 2019 11:49AM

Camera IconThe Little Peoples Place in Vasse says they tailor prices to working families around the Governments Child Care Subsidy and have kept prices reasonable at around $90 per day.Picture: Jackson Lavell-Lee

Families living in Busselton and Margaret River were hit with a 13 per cent annual hike in childcare centre fees last financial year — the biggest rise in WA.

The price hike meant parents were potentially paying more despite the new Federal Government Child Care Subsidy.

One year after the Government’s childcare shake-up, new data has revealed childcare centres across Australia have jacked up their fees by as much as 20 per cent in a year.

Little People’s Place Vasse director Jodie Buck said the company had kept prices reasonable for what they were offering, at $90 per day.

“We ensure working families don’t go over their subsidy hour cap per week and we offer a discounted rate for those families,” she said.

“If they are a full-time working family, we still ensure they are getting the correct childcare subsidy so they are not out of pocket in any way.

Forrest MHR Nola Marino said the Government would consider naming providers who had hiked up prices since the subsidy was implemented.

“The Government’s childcare subsidy ensures families in the South West, who were earning the least, were supported to access child care,” she said.

“The Government is also supporting childcare providers to keep their doors open and take more children through our Community Child Care Fund.”

Under the new system, which came into effect 12 months ago, taxpayers subsidise up to 85 per cent of childcare costs for low-income families, which gradually tapers down to 20 per cent for families earning up to $351,000 a year.

The maximum hourly rate the Government will subsidise is now $11.98 an hour — up from $11.77 — with parents forced to pay the difference if centres charge more.